Spain | Recovery, Transformation and Resilience Plan: situation and outlook

Summary

Despite the expectations created at the end of 2020, the Plan's impact on the National Accounts was slow in 2021 — though this is expected to accelerate in 2022 and 2023. The challenge now is to invest wisely in projects which will drive and transform the economy.

Key points

• Key points:
• In addition, Spain has up to EUR 70 billion available in loans from the Recovery and Resilience Facility to support investment and economic reform.
• Greater transparency is needed, in terms of the National Accounts, when executing the Plan, to enable a real-time assessment of the macroeconomic impact of the investments undertaken.
• Bottlenecks, import demand and their effect on inflation could reduce its impact on GDP, against a backdrop of ECB rate rises.
• The investments and reforms could increase potential growth in the Spanish economy—the main aim of the Plan—but there is a great deal of uncertainty about its long-term effects.

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